security latam

Due Diligence Services: Managing Business Risk in Latin America

Although the region is growing, one cannot ignore the corruption that keeps profits from falling into the right hands. With shocking statistics like tax evasion numbers totaling USD $340 billion in 2015, corruption tends to find its ways in all areas of the different sectors of Latin America. When considering evidence of government theft and sketchy business dealings, it is important to be proactive when conducting business in the region.

If you read our recent article on due diligence and why it matters in Latin America, you will find relevant information about why it is important to take preventive measures when doing business in Latin America. Not only from a legal point of view does due diligence minimize risk, but from an ethical perspective your care in doing business will benefit you and others in the long run. To help you understand the different kinds of due diligence and business intelligence services available to you while you do business in Latin America, we have created a list of the services you should seek out in order to protect yourself and your company.

Due Diligence and Business Intelligence Services 

Security Services Latin America Due diligence

Polygraph Service

What is is:

Also known as a lie detector, it is a more or less effective way of determining whether someone is lying or not. Heart rate increase and body language help define whether the subject is truthful.

Why is it needed?

For companies or private individuals wanting to find out the truth. This can range from being a way to find a culprit as well as a tool which can be used to dissuade dishonesty.

Due diligence

What is it?

It is a legal concept meaning that it is your responsibility to make sure that you are not doing business with criminals (Clinton List). For instance when you buy a very cheap bike with a padlock still attached to it, you are expected to do a background check on the seller to be sure that he hasn´t unlawfully stolen it.

Why do you need it?

Not only is it a bad idea to deal with criminals but it can be dangerous and illegal. Doing background checks in Latin America is very common for these reasons. Information can also give you leverage in many situations.

Risk Management and Analysis

What is it?

Risk analysis is all about trying to highlight, identify, evaluate and quantitatively measure the probability of risks. Risk management is the second step which consists in acting upon the data you have gathered and deciding how to react to the situation.

Why is it useful?

Simply because this will give you an accurate idea of what you are getting into. It´s important to have the information necessary to carry out a balanced judgement.

Security Services Latin America due diligence Corporate Research

What is it?

It’s the act of looking up the long and short term aspects of a company or market that you are going to invest in or work with. The aim is to better understand the prospects as well as to do some basic terrain research. This allows one to gather information about market competitiveness, purchasing power parity, prices and other factors.


Why is it useful?

This basic background research will give you better knowledge of your future investment or work environment which in turn helps with decision making.

Prevention of Corporate Espionage

What is it?

Many firms have developed certain trade secrets, proprietary technology or other tools,  giving them a competitive advantage in the market. The protection of these secrets is crucial to keeping their place in the market; this means they need to protect them. There are various steps such as identifying threats (competition), implementing physical and technological security, training workforce, compartmentalizing information, etc.

Why is it useful?

This will prevent you from losing a competitive advantage which was gained through an investment.

Management of Personal and Corporate Security

What is it?

The management of corporate security helps mitigate potential problems at an early stage which can threaten a company’s resilience. It coordinates and manages all functions within a company which have a relation with security and long term safety.

Why is it useful?

It is crucial when developing a safe and productive work environment.

Vulnerability and Risk Studies for FacilitiesSecurity Services Latin America due diligence

What is it?

All facilities face a certain level of vulnerability, whether this comes from their equipment, terrorism, employees, natural disasters or random accidents. The need to minimize risk is crucial . It is the manager’s responsibility to protect their facility using all the tools available.

Why is it useful?

As a manager it is in your interest to protect your workers, your capital and your future dealings. When faced with security issues, reputation and safety can be affected. 


What do Due Diligence and Business Intelligence Services Look Like? 

Contracting these kinds of services will look different depending on what kind solutions you are looking for. You can use these services to ensure that potential investors and distributors are trustworthy and have had good credit ratings in their past dealings. The services can require field investigations that gather evidence from friends and family or from the management of personal and business accounts.

Located in Latin America, Biz Latin Hub has had a lot of experience in working for those in need of security and corporate intelligence solutions. An example of this was when the owner of a petroleum service asked for a discreet investigation to be carried out on 3 of his senior members. They were all discovered to be working together to default the company. Biz Latin Hub then proceeded to remove the wrongdoers without damaging the company’s finances and reputation.

Biz Latin Hub can help you do business in Latin America

Although there are many opportunities for doing business in Latin America, it can sometimes be challenging due to the significant legal and cultural differences you may encounter. If you are considering doing business in one of these promising rising stars, we have a team of local and expat professionals ready to advise you on any query you may have. Our mission is to facilitate the entrance of entrepreneurs and investors into Latin American markets with the help of our experienced teams of accountants and lawyers.

Contact us now to receive comprehensive advice about doing business in your chosen country.

Learn about our team and expert authors.

The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Craig Dempsey

Craig Dempsey

Craig is a seasoned business professional in Latin America. He is the Managing Director and Co-Founder of the Biz Latin Hub Group that specializes in the provision market entry and back office services. Craig holds a degree in Mechanical Engineering, with honors and a Master's Degree in Project Management from the University of New South Wales. Craig is also an active board member on the Australian Colombian Business Council, and likewise also active with the Australian Latin American Business Council.

Craig is also a military veteran, having served in the Australian military on numerous overseas missions and also a former mining executive with experience in various overseas jurisdictions, including, Canada, Australia, Peru and Colombia.

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